97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
HB1947

 

Introduced , by Rep. William Davis

 

SYNOPSIS AS INTRODUCED:
 
35 ILCS 5/212

    Amends the Illinois Income Tax Act. Increases the earned income tax credit from 5% of the federal credit to 10% in 2011, 15% in 2012, and 20% in 2013 and thereafter. Effective immediately.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB1947LRB097 08277 HLH 48403 b

1    AN ACT concerning revenue.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Income Tax Act is amended by
5changing Section 212 as follows:
 
6    (35 ILCS 5/212)
7    Sec. 212. Earned income tax credit.
8    (a) With respect to the federal earned income tax credit
9allowed for the taxable year under Section 32 of the federal
10Internal Revenue Code, 26 U.S.C. 32, each individual taxpayer
11is entitled to a credit against the tax imposed by subsections
12(a) and (b) of Section 201 in an amount equal to the following:
13        (1) for each taxable year beginning on or after January
14    1, 2000 and ending before or during calendar year 2010, the
15    amount of the credit is 5% of the federal tax credit; for
16    each taxable year beginning on or after January 1, 2000.
17        (2) for any taxable year ending during calendar year
18    2011, the amount of the credit is 10% of the federal tax
19    credit;
20        (3) for any taxable year ending during calendar year
21    2012, the amount of the credit is 15% of the federal tax
22    credit; and
23        (4) for any taxable year ending during calendar year

 

 

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1    2013 or thereafter, the amount of the credit is 20% of the
2    federal tax credit.
3    For a non-resident or part-year resident, the amount of the
4credit under this Section shall be in proportion to the amount
5of income attributable to this State.
6    (b) For taxable years beginning before January 1, 2003, in
7no event shall a credit under this Section reduce the
8taxpayer's liability to less than zero. For each taxable year
9beginning on or after January 1, 2003, if the amount of the
10credit exceeds the income tax liability for the applicable tax
11year, then the excess credit shall be refunded to the taxpayer.
12The amount of a refund shall not be included in the taxpayer's
13income or resources for the purposes of determining eligibility
14or benefit level in any means-tested benefit program
15administered by a governmental entity unless required by
16federal law.
17    (c) This Section is exempt from the provisions of Section
18250.
19(Source: P.A. 95-333, eff. 8-21-07.)
 
20    Section 99. Effective date. This Act takes effect upon
21becoming law.